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Assume that you have $300,000 invested in a stock that has a beta of 1.1, $150,000 invested in a stock with a beta of 0.4,

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Assume that you have $300,000 invested in a stock that has a beta of 1.1, $150,000 invested in a stock with a beta of 0.4, and $400,000 invested in a stock with a beta of 1.0. What is the beta of your portfolio? a. 0.50 b. 0.76 c. 0.93 d. 1.10 Howard Corporation has a beta equal to 2.0 and a required return of 18% based on the CAPM. If the market risk premium is 7.5%, what is the risk-free rate of return? a. 1.5% b. 3.0% c. 7.5% d. 10.5% Suppose that ABC Corp's beta 1.2. If the market return is 6% and the risk-free interest rate is 3%, then the expected return ABC Corp's stock is_____. a. 5.4% b. 6.0% c. 7.8% d. 10.2%

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